1. Which of the following risk mitigation strategies helps to reduce the company's exposure to risk? Select one.

A. Risk retention

B. Risk control

C. Risk financing

D. Risk transfer

2. How do you determine the opportunity cost of an investment? Select one.

A. Determine the future value of the investment

B. Compare the cost of investing vs. not investing

C. Compare the purchase value vs. market value of the investment

D. Add the cost of investment and labor involved in making the investment

3. One of the risks identified by a warehouse in Texas is hurricanes. How should you classify this risk? Select one.

A. Event risk

B. Market risk

C. Product risk

D. Macroeconomic risk